Section 8 Fair Market Rent (FMR) for ZIP 95765 - 2027

Investment Score for ZIP 95765

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,260
1 Bedroom	$2,320
2 Bedrooms	$2,850
3 Bedrooms	$3,740
4 Bedrooms	$4,310
5 Bedrooms	$5,000
6 Bedrooms	$5,600
7 Bedrooms	$6,048
8 Bedrooms	$6,350

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,850	$557,337	0.51%	F
3BR	$3,740	$625,128	0.6%	F
4BR	$4,310	$754,543	0.57%	F
5BR	$5,000	$940,320	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 95765 (Rocklin, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 95765 (Rocklin, CA) in 2026 indicate that the rent for a two-bedroom apartment is set at $2,980. However, it's important to note that this figure represents only 25.9% of the median household income in Rocklin, which stands at $138,090. This suggests that the FMR is significantly lower than what might be considered a typical market rent in this area. For context, the Zillow median price for a two-bedroom home in Rocklin is $558,472. The price-to-FMR ratio for a two-bedroom unit is 15.6x, meaning that the median home price is about 15.6 times the FMR for a similar-sized rental unit. This high ratio indicates that the rental market is much more affordable compared to the purchase market. Given these dynamics, Section 8 voucher holders face significant constraints in finding suitable housing. The FMR is designed to ensure that voucher holders can find housing options that do not exceed 30% of their income, but the actual rents in the area may far exceed the FMR. For instance, if a landlord charges the Zillow median rent of $558,472 divided by 12 months ($46,539 per month), it would be nearly 15.6 times the FMR for a two-bedroom unit. Therefore, voucher holders are likely to struggle to find landlords willing to accept the voucher at the FMR rate. #### Affordability & Renter Profile Rocklin has a population of 43,871, with 30.4% of residents being renters. This indicates a relatively strong demand for rental properties in the area. The occupancy rate of 95.8% further supports the notion that the rental market is tight, with very few vacant units available. Given the median household income of $138,090, it is clear that the majority of residents in Rocklin are financially stable and can afford higher rents. However, the 30.4% of renters represent a segment of the population that may find it challenging to secure housing at market rates. The FMR for a two-bedroom unit at $2,980 is only 25.9% of the median income, which means that even without a voucher, many residents could afford to pay more than the FMR. This tight market makes it difficult for lower-income individuals to find affordable housing, especially when they rely on vouchers that are capped at the FMR. #### Investor Angle From an investor perspective, the ZIP code 95765 presents both opportunities and challenges. The FMR for a two-bedroom unit is $2,980, which is considerably lower than the Zillow median price of $558,472. However, the high price-to-FMR ratio of 15.6x suggests that there is a significant gap between the FMR and the actual market rent. To determine whether this ZIP code is cash-flow positive at the FMR, we need to consider the cost of acquiring and maintaining rental properties. If an investor purchases a property at the Zillow median price of $558,472 and aims to rent it out at the FMR, the monthly rent would be $2,980. Assuming a mortgage rate of 5% and a 20% down payment, the monthly mortgage payment would be approximately $2,790. This leaves a small margin for expenses such as maintenance, utilities, and property management, which typically amount to around 50% of the rent. Therefore, the net cash flow would be negative, making it difficult for investors to generate positive returns solely based on the FMR. This suggests that the investment grade for Section 8-focused investors in Rocklin is low, as the rental income at the FMR level is insufficient to cover the costs associated with owning and managing a property. #### Specific Actionable Insights 1. **Target Higher-Income Renters**: Given the high median household income and the tight rental market, investors should consider targeting higher-income renters who are willing to pay above the FMR. This could include offering amenities such as high-speed internet, modern appliances, and well-maintained properties to attract tenants who can afford to pay closer to market rates. 2. **Focus on Larger Units**: The FMR for larger units (3BR and 4BR) is significantly higher, at $3,970 and $4,570 respectively. Investors should focus on developing or purchasing larger units, as these are more likely to generate positive cash flows due to the higher FMR rates. Additionally, larger units often command higher rents in the market, providing a better opportunity for profit. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 95765 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flows at the FMR levels. Instead, investors should look for areas where the FMR is closer to the actual market rent or where there is a higher percentage of renters who rely on Section 8 vouchers. In Rocklin, the focus should be on higher-income renters or larger units that have higher FMR rates, which may provide better investment opportunities.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.